Crypto Bottom is In and ‘Massive Rally’ Awaits, Pantera Capital Predicts
After a 50% decline from the top, the bear market in bitcoin (BTC) and crypto more broadly is probably over for now, and a new “massive rally” is likely to happen within the next year, crypto hedge fund Pantera Capital’s CEO Dan Morehead has said.
Morehead wrote in his latest newsletter that:
“I think we’re done with the bear market -50% and we’re on to a new rally cycle. The next 6-12 months are likely to see a massive rally as investors flee stock, bond, and real estate markets – for blockchain.”
The well-known crypto asset manager added that the bitcoin price is now 56% below an 11-year-old exponential growth trend on the bitcoin chart. “The markets have rarely been so cheap relative to the trend,” he said.
Morehead also said in his newsletter that we are entering a period of rising rates, and that this is something that will probably continue “for years,” with the 10-year US treasury rate predicted by the firm to triple.
The investor noted that the median forecast for the peak in the US Federal Reserve’s Federal Funds Rate is 2.1%.
“That’s below where they were just before the pandemic, even though the economy is massively overheated compared with two years ago,” Morehead said, while reminding readers that “no working-age person in America has invested in a rising rate environment.”
This latest prediction from Pantera that the crypto market bottom is behind us comes after the firm in early February delivered an outlook that turned out to be spot on.
On February 1, the firm’s co-chief investment officer Joey Krug predicted in a call with investors that the correlation between bitcoin and traditional financial markets would break this spring.
“And so we think over the next number of weeks, crypto is basically going to decouple
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